EFSD experts took part in the T-20 (the G20 expert group) Summit and contributed research on international financial architecture. Within the task force "International Finance and Economic Recovery", EFSD experts presented their proposals aimed at strengthening coordination of various institutions as concerns provision of sovereign financing.
As part of the G20 event, on September 4-6th the T20 summit is held under the chairmanship of Indonesia.
EFSD experts formulated their proposals on the subject of international financial architecture in their policy brief ‘Sharpening the Profile and Scope of the Global Financial Safety Net for Better Performance and Governance of the Financial Sector’ published on the T-20 website, the authors stressed that the current understanding of the Global Financial Safety Net required clarification. There are valid reasons to account for the multilateral development banks’ operations as well as bilateral assistance in addition to the current reading of the GFSN, which includes FX reserves, swap arrangements, regional financing arrangements, and the IMF. The proposed solution aims to increase the limits of stabilization financing, as well as to address the problem of uneven geographic coverage.
A part of these proposals found their way into the final T-20 communiqué for the G20 Leaders’ Summit in Bali. First, G20 members should enhance collaboration among global financial safety net institutions on toolkits and lending frameworks and international financial institutions’ shareholder targets through the G20 Finance Track. Second, EFSD experts noted that there is also a need to strengthen donor cooperation platforms. Finally, on data availability, a platform should be introduced for GFSN statistics that will be directly provided by the institutions and administered by a trusted partner.
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The T20 framework contributes to the G20 agenda in four ways: providing analytical inputs into the G20’s decision-making process; providing independent recommendations, which are based on empirical evidence; promoting international cooperation by providing honest and foresight discussions among think tanks and researchers; initiating policy dialogue on issues that have yet been covered in the formal forum.
Taking into account the priorities included in Indonesia`s G20 agenda, the main task for T20 was to prepare recommendations in the form of analytical briefs for the leaders of the G20 in the field of climate, health, digitalization, international financial architecture to promote sustainable and inclusive economic growth.
This year, more than 800 applications were received from well-known experts from around the world and a number of international institutions and organizations to participate in writing analytical briefs for T20. As a result, of professional selection, the application of EFSD experts was among the 15 selected for further work on the issue of international financial architecture within Task Force 7 - "International Finance and Economic Recovery".